CODOFINE 2015-04 : Position on the distinction between “Christian finance” and “Christian-compatible finance”

Following the Assessment 2015-01 of the EXCELSIS Rating Committee, the Council of Doctrinal Financial Ethics (the “Codofine”) was requested by the OFCCFO’s president to clarify the conceptual difference between “Christian finance” and “Christian-compatible finance” (the “Distinction”).

The Codofine points out that the Fundamental Charter of Christian Ethical Finance(the “Charta”) does not refer explicitly to the Distinction. However such a distinction may be practically of use to ensure a high quality financial information relating to thestakeholders, activities, products, behaviors, concepts and organizations in the banking, financial or insurance sectors, and the Codofine highlights the importance of high quality, transparent information for building trust in the Christian financial area and for making virtuous investment decisions.

As a consequence, the Codofine opines the followings:

1- “Christian finance” and “Christian-compatible finance” shall refer to the stakeholders, activities, products, behaviors, concepts and organizations in the banking, financial or insurance sectors, compliant with the Charta, and in particular,

(a) “Christian finance” shall refer to those among them mentioning explicitly Christianity as a principle and/or an objective;
(b) “Christian-compatible finance” shall refer to those among them mentioning no explicit reference to Christianity;

2- Stakeholders, activities, products, behaviors, concepts and organizations in the banking, financial or insurance sectors which are not compliant with the Charta shall not be referred to as “Christian” nor “Christian-compatible”.